Watching Dragons Den recently I was struck by the number of times the applicants failed to answer simple question about the profitability of their business.
Was it the language used by the dragons that caused then to stumble? Or did they simply not know enough about the numbers that underpinned their business?
Either way it you can see straight away when they don’t know and this is instantly recognised by the dragons and it always seems to go downhill from there.
Your business accounts give you and the reader lots of information which can help any businessperson all you have to do is understand what they are telling you and then act accordingly.
If you struggle to make head nor tail of the numbers don’t bury your head in the sand and think you are in any way inferior what you need to do is recognise the fact and get help.
The first port of call is obviously your Accountant who after all makes a living from understanding the numbers and if they can’t explain the basics then you need to make a change to a firm that can explain them in a way that you can understand.
Your Accountants shouldn’t be just about producing your annual accounts and working out your tax. If that is what you want then fine but if you want and need more then approach them and if you don’t get what you need or want then change them for a firm that is a more comfortable fit.
You know and understand your business, they know and understand the numbers that underpin your business if you work together who knows what you could achieve but I bet you wouldn’t get tongue tied in from of the dragons.
By Tony Margaritelli – Chairman, ICPA